What are Stock Certificates?
Corporations sell stocks to people so that they can raise capital. If you buy a corporate stock share, then you become a partial owner of the corporation that sold you the stocks. The number of shares you buy from the corporation represents your interest in that corporation. This is how to become a shareholder of the corporation.
The corporation mostly sells only half of corporate stock. The other half of the unretained stocks are then sold to individuals or through a stockbroker. Some corporations give the remaining shares of stock to their employees. Owning more than half of the available corporate stocks will give you the power to determine how the corporation conducts business. And this is why most corporations try to own more than half of the corporate stock. Owning more than half of the corporate stocks will make you the controlling or majority shareholder. Then you will have the right to vote or the right to receive dividends from the corporate profits.
The common stock and the preferred stock are the two different types of stocks that a corporation can issue. Common stocks are issued to shareholders. A preferred stock carries a fixed dividend percentage rate and is like a promissory note. If the corporation is dissolved, the common stockholders receive a share of the corporation assets. Common stock can be voting or non-voting. You can join in the election of the corporation’s board of directors if you hold a voting common stock. Even if you are a non-voting common stockholder, then you will receive a share of the corporation’s assets upon its dissolution.
A stock certificate is a document that certifies ownership of a specific number of stock shares in a corporation. A stock certificate is given to anyone who buys corporate stock shares. Stock certificates are usually signed by the corporation’s legal representatives. Your stock certificate is evidence of your ownership interest in a corporation. If you own corporate stock, then you are able to exercise all rights and privileges associated with being a shareholder in the corporation. This is why you can have a voice and a vote in any of the shareholders’ meetings as your right and privilege as a shareholder.
If you have bought stocks from a corporation and you need your stock certificates, then you can simply apply for it online. You will find many sites online where you can get your free stock certificates. There is some information that will be asked of you in the online form and so you must fill them up carefully so that you get the correct stock certificates that you need. Using the online stock certificates give you much convenience in having your stock certificates delivered to you. With your stock certificates, you are now certified part owner of the corporation you have bought your stocks from.